Vedanta outbids Adani to buy bankrupt JAL with ₹17,000 crore offer

With net present value of ₹12,505 crore, bid highest recovery plan placed so far

The Anil Agarwal-owned Vedanta group outbid the Adani conglomerate to emerge as the top bidder for bankrupt Jaiprakash Associates Ltd (JAL), offering ₹17,000 crore in a challenge auction conducted by lenders on Friday, according to people familiar with the matter. 

The bid, with a net present value of ₹12,505 crore, is the highest recovery plan placed so far for the debt-laden company, the people said, asking not to be named as the information is not public. Lenders to Jaiprakash, who have admitted claims of over ₹59,000 crore, will still have to take a haircut of around 71 per cent under Vedanta’s proposal. 

 

The auction saw only Vedanta and Adani actively participate, even though other shortlisted suitors — Dalmia Bharat Group, Jindal Power and PNC Infratech — had qualified for the process. These companies chose not to submit bids in the final round, which began with a floor price of ₹12,000 crore. Subsequent bids were submitted over email, the people said. 

The Vedanta group and Adani group did not respond to emailed queries. 

For Vedanta, acquiring Jaiprakash Associates offers an entry point into the cement and infrastructure sectors, where the group currently has no presence.

 

Vedanta, known for its businesses in metals, steel, mining, and oil and gas, is in the midst of restructuring Vedanta, its listed entity, into five separate pure-play companies to unlock shareholder value. The proposal, however, is facing opposition from the Indian government in court. 

The Jaiprakash acquisition would bring marquee assets such as Jaypee Greens, Wish Town, and the International Sports City near the upcoming Jewar airport into Vedanta’s portfolio. It would also give the group a foothold in the cement industry, a sector undergoing rapid consolidation with UltraTech, Adani, and Shree Cement expanding aggressively. 

The acquisition process, however, is far from concluded. The Committee of Creditors has sought assurances from bidders that they will pay additional sums if a dispute over land held by Jaiprakash Associates with the Yamuna Expressway Industrial Development Authority (YEIDA) is resolved in the company’s favour. The matter is currently before the Supreme Court. In March, the Allahabad High Court upheld YEIDA’s decision to cancel the land allotment for the project. The apex court is now examining a case involving Jaiprakash’s 1,000-hectare Sports City project in Greater Noida.

 

Separately, Suraksha Group-owned Jaiprakash Infratech has moved the National Company Law Tribunal against the rejection of its earlier bid by the lenders, citing non-compliance with earnest money deposit requirements. The case is listed for hearing on September 12.

 

While Adani and Dalmia Bharat had already secured clearance from India’s antitrust regulator, the Competition Commission of India (CCI), for their proposed resolution plans, Vedanta has yet to apply for approval, the people said.

 

The Jaiprakash Group, once a prominent player in India’s infrastructure and real estate space, has been weighed down by debt for nearly a decade. Its flagship assets, including cement plants, real estate projects, expressways and hospitality, have drawn interest from multiple bidders across successive bankruptcy resolution attempts. Its real estate arm, Jaypee Infratech, was auctioned under bankruptcy law and eventually acquired by the Suraksha Group.

 

Despite repeated efforts, lenders have so far struggled to recover meaningful value. The current auction represents one of the largest ongoing resolutions under India’s insolvency framework.

 

Even with Vedanta’s winning offer, banks will recover less than a third of their total exposure, underscoring the depth of losses tied to JAL’s default. For lenders, however, closing the case would bring long-awaited resolution after years of litigation and stalled processes.

 

For Vedanta, clinching Jaiprakash could reshape its portfolio, adding a new growth engine in housing and infrastructure at a time when India’s economy is expanding at the fastest pace among major economies.

 

The group’s challenge will be to navigate legal complexities, secure regulatory approvals and integrate a sprawling but distressed business into its fold. Vedanta recently came under attack by a US-based short seller, which accused the India-listed company of upstreaming cash from its Indian entity as dividends to Anil Agarwal-owned Vedanta Resources. A public interest litigation on the matter is listed for hearing in the Supreme Court on Monday. 

The road ahead 

*  Creditors, with admitted claims of over ₹59,000 crore, still face a 71% haircut 

*  Deal would mark Vedanta’s entry into cement, realty, and infra 

*  Resolution remains tied up in disputes over YEIDA land and pending case Sports City land